INVESTOR PRESENTATION October 2017 Forward Looking Statements This - PowerPoint PPT Presentation

INVESTOR PRESENTATION October 2017

Forward Looking Statements This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of Viña Concha y Toro’s control that could cause Viña Concha y Toro’s actual results to differ materially from those set forth in the forward-looking statements. These risks factors include but are not limited to the risks factors in Item 3 – “Key Information – Risk Factors” in the 20-F Annual Report, and in those described in Viña Concha y Toro’s Financial Statements, Note 5 (“ Gestión de Riesgos Financieros ”) . Forward-looking statements speak only as of the date they are delivered, Viña Concha y Toro undertake no obligation to publicly update or revise them considering developments which differ from those anticipated. 2

Consolidated sales volume Wine sales -million 9 liter cases 36.2 34.3 33.2 30.7 30.6 2012 2013 2014 2015 2016 3

Consolidated sales Ch$ million 658,448 636,194 583,313 475,622 448,250 2012 2013 2014 2015 2016 4

Operating income Ch$ million 11.2% 12% 10.8% 10.7% 120,000 10% 100,000 8.1% 7.6% 8% 80,000 71,022 70,185 63,010 6% 60,000 36,164 36,213 4% 40,000 2% 20,000 0 0% 2012 2013 2014 2015 2016 Operating income Operating margin 5

EBITDA Ch$ million 16% 14.7% 14.3% 14.1% 120,000 14% 12.0% 11.6% 93,432 100,000 92,701 12% 83,425 10% 80,000 8% 54,973 53,852 60,000 6% 40,000 4% 20,000 2% 0 0% 2012 2013 2014 2015 2016 EBITDA EBITDA margin 6

Net Income Ch$ million 120,000 10% 7.8% 100,000 7.4% 7.3% 8% 7.0% 6.7% 80,000 6% 60,000 49,797 47,931 43,051 4% 33,174 40,000 30,022 2% 20,000 0 0% 2012 2013 2014 2015 2016 Net income Net margin 7

Financial Results - 2016 12M 2016 12M 2015 Change MM Ch$ MM Ch$ % Total volume (MM cases) 38.6 36.8 4.9% Sales 658,448 636,194 3.5% Cost of sales (412,382) (391,505) 5.3% Gross Profit 246,066 244,689 0.6% Gross margin 37.4% 38.5% SG&A (182,475) (172,453) 5.8% SG&A / sales -27.7% -27.1% Operating Income 70,185 71,022 -1.2% Operating margin 10.7% 11.2% Non-operating Income (4,113) (4,141) -0.7% Net income 47,931 49,797 -3.7% 8

Operating profit by country Sales Operating Country MM 9L Cases MM Ch$ margin Chile 33.4 470,712 12.5% Trivento 2.6 45,628 8.6% Fetzer 2.6 77,366 1.6% Total Holding 38.6 593,706 10.7% 9

Operating profit by country Country Exports Domestic market CHILE: Operating margin 16.0% 1.6% % of total sales 61.7% 19.4% ARGENTINA: Operating margin 13.6% -20.1% % of total sales 6.0% 1.0% 10

Company Targets for the next 5 years • SALES INCREASE OF 5.5% IN AVERAGE PER YEAR • EXPANSION IN OPERATING MARGIN TO A RANGE OF 15.5% - 16.5% BY 2022 11

Strategy to achieve our 5-year targets 1. RESTRUCTURING PROCESS AND COST SAVINGS 2. NEW COMMERCIAL STRATEGY 3. SPECIAL FOCUS ON CASILLERO DEL DIABLO BRAND 4. FOCUS ON OTHER HIGH PERFORMING BRANDS 5. FOCUS ON KEY MARKETS TO SEEK HIGHER GROWTH 6. SEGMENT INNOVATIONS IN NON WINE CATEGORY 12

1. Restructuring process and cost savings • Expected to be finished in 1H18 • Cost Savings • Operational Efficiency • Commercial strategy - focus on core brands • Estimated annual savings: Ch$12,000 million, approx. 1.5% to 2.0% of sales 13

2. New commercial strategy for CyT group • Prepared to take opportunities where industry is growing • Premium wine is driving the growth USA – Growth rate by price segment - 2016 14

2. New commercial strategy for CyT group • Premium wines: Seek strong growth in sales, focused in price segments >US$10 • Non-Premium wines: Low single digit growth for categories of price <US$10 Current mix Chile Argentina USA Total Premium 37.1% 44.8% 78.0% 42.5% Non-Premium 62.9% 55.2% 22.0% 57.5% 15

3. Special focus on Casillero del Diablo brand 16

3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA L E Y E N D A PREMIUM F O B 2 0 0 U S D SUPER R E S E R V A PREMIUM P R I V A D A F O B 6 0 U S D ULTRA D E V I L ’ S PLUS C O L L E C T I O N F O B 4 5 U S D R E S E R V A PREMIUM F O B 3 5 U S D P R E M I U M : 9 3 % U S $ P P , S P , U P : 7 % U S $ 17

3. Special focus on Casillero del Diablo brand STRONG SALES GROWTH + USD 200 mm 2017 18

3. Special focus on Casillero del Diablo brand STRONG SALES GROWTH 2016 v/s 2015 160% 22% 29% 8% 19

3. Special focus on Casillero del Diablo brand As a key Brand for the Company, Casillero del Diablo must be the driver for VOLUME and VALUE 20

3. Special focus on Casillero del Diablo brand INNOVATION = GROWTH Highly competitive and complementary product portfolio, adding innovation to the brand 21

3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA L E Y E N D A PREMIUM F O B 2 0 0 U S D SUPER R E S E R V A PREMIUM P R I V A D A F O B 6 0 U S D ULTRA D E V I L ’ S PLUS C O L L E C T I O N F O B 4 5 U S D R E S E R V A PREMIUM F O B 3 5 U S D 22

3. Special focus on Casillero del Diablo brand LARGEST PREMIUM WINE RANGE IN THE WORLD 23

3. Special focus on Casillero del Diablo brand Red Blend New addition to the Global Range in Reserva Line 24

3. Special focus on Casillero del Diablo brand PACKAGING • Different from Reserva • Modern look and more into the “Red Blend” mood 25

3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA L E Y E N D A PREMIUM F O B 2 0 0 U S D SUPER R E S E R V A PREMIUM P R I V A D A F O B 6 0 U S D ULTRA D E V I L ’ S PLUS C O L L E C T I O N F O B 4 5 U S D R E S E R V A PREMIUM F O B 3 5 U S D 26

3. Special focus on Casillero del Diablo brand RED WHITE BRUT 27

3. Special focus on Casillero del Diablo brand PRICE SEGMENT OPPORTUNITY 35 USD 45 USD 60 USD 28

3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA L E Y E N D A PREMIUM F O B 2 0 0 U S D SUPER R E S E R V A PREMIUM P R I V A D A F O B 6 0 U S D ULTRA D E V I L ’ S PLUS C O L L E C T I O N F O B 4 5 U S D R E S E R V A PREMIUM F O B 3 5 U S D 29

3. Special focus on Casillero del Diablo brand NEW RESERVA PRIVADA PORTFOLIO CABERNET SAUVIGNON CARMENERE CHARDONNAY SAUVIGNON BLANC 30

3. Special focus on Casillero del Diablo brand INNOVATIONS NEW BRAND PORTFOLIO UTRA • Incremental PREMIUM volume SUPER PREMIUM • Show a fresh and ULTRA modern brand PLUS • Stand out from PREMIUM the competition 31

3. Special focus on Casillero del Diablo brand 32

4. Focus on high-performing brands - Cono Sur Bicicleta Th 9L cases 1600.0 1,334 CAGR: + 13% 1400.0 1,263 1,116 1200.0 938 1000.0 804 703 692 800.0 600.0 400.0 200.0 - 2012 2013 2014 2015 2016 1H16 1H17 33

4. Focus on high-performing brands - Cono Sur Bicicleta • Target: Price increase from US$26 to US$30 in 3 years. 34

4. Focus on high-performing brands - Trivento Reserve Th 9L cases CAGR 700.0 +64% 636 600.0 464 500.0 386 400.0 296 261 300.0 199 200.0 88 100.0 - 2012 2013 2014 2015 2016 1H16 1H17 35

4. Focus on high-performing brands - Trivento Reserve KEY MARKETS UK: USA: #1 Malbec Hot brand Growing at 32% 36

4. Focus on high-performing brands - Bonterra GLOBAL LEADER IN ORGANIC WINE Th 9L cases CAGR + 18% 534 462 377 353 310 235 230 220 2011 2012 2013 2014 2015 2016 1H16 1H17 37

4. Focus on high-performing brands - 1000 Stories SUCCESSFUL INNOVATION IN THE AMERICAN MARKET Th 9L cases CAGR 83,602 90000.0 + 549% 80000.0 70000.0 60000.0 47,857 50000.0 33,573 40000.0 30000.0 15,957 20000.0 1,983 10000.0 - 2014 2015 2016 1H16 1H17 38

5. Focus on key markets to seek higher growth CANADA USA UK MEXICO CHINA JAPAN UAE (Arab Emirates) BRAZIL 39

6. Segment innovations in non-wine category • Looking for oportunities in non-wine categories • Target: 5% of sales; operating margin of Ch$ 3,500 million 40

Strategy to achieve our 5-year targets We see in our vertically integrated business model, from the vineyards to the commercial network, a major competitive advantage in order to achieve our targets. 41

Real Estate business In addition, the company is entering in the Real Estate business, focused on maximizing the profitability of its non-core properties. 42

Real Estate business We have identified 400 hectares of non-core properties with high potential for real estate projects. In a first stage, we have targeted 74 hectares to develop in the next 10 to 15 years. 43

Real Estate business: Fundo Tocornal Location: Puente Alto, RM Land area: 43.57 Ha. N Current state: feasibility study (18 months) Real Estate project: houses Project timing: 11 years TOCORNAL Est. land market value w/feasibility: UF 1.8/m2 Estimated project market value*: UF 4.5 /m2 *Considers value gains UF + 2% annual 44